Privatisation closer as NZ Nationals win election
NZ’s state-owned personal injury insurer is set to face private competition after voters tipped out the Labour Party government in Saturday’s election.
The National Party won 45.5% of the vote, comfortably ahead of Helen Clark’s government with 33.8%. The Nationals are likely to form a new government with the support of several minor coalition partners.
During the election campaign Nationals leader John Key said his government would investigate opening the state-controlled Accident Compensation Corporation (ACC) Work Account – which covers workers’ compensation for all employees and the self-employed – to competition.
The Prime Minister-elect said during the campaign the Nationals “support the introduction of competition and choice to the ACC Work Account”, committing to a review in order to reverse a comparatively high workplace accident rate.
Insurance Council of NZ CEO Chris Ryan told insuranceNEWS.com.au today any further detail is yet to be sorted out, but change looks likely.
“There is a much clearer intention to review the way the ACC works with a view to introducing competition,” he said. “As yet, the implications are unclear, but we are prepared for any eventuality.”
Mr Ryan says the introduction of competition to the ACC was overshadowed during the election campaign by wider economic issues.
The ACC was privatised by the previous National-led government in 1998, but was re-nationalised when Labour won power the following year.
Australian-based insurers would be the key beneficiaries of competition because they dominate the local market.
The National Party won 45.5% of the vote, comfortably ahead of Helen Clark’s government with 33.8%. The Nationals are likely to form a new government with the support of several minor coalition partners.
During the election campaign Nationals leader John Key said his government would investigate opening the state-controlled Accident Compensation Corporation (ACC) Work Account – which covers workers’ compensation for all employees and the self-employed – to competition.
The Prime Minister-elect said during the campaign the Nationals “support the introduction of competition and choice to the ACC Work Account”, committing to a review in order to reverse a comparatively high workplace accident rate.
Insurance Council of NZ CEO Chris Ryan told insuranceNEWS.com.au today any further detail is yet to be sorted out, but change looks likely.
“There is a much clearer intention to review the way the ACC works with a view to introducing competition,” he said. “As yet, the implications are unclear, but we are prepared for any eventuality.”
Mr Ryan says the introduction of competition to the ACC was overshadowed during the election campaign by wider economic issues.
The ACC was privatised by the previous National-led government in 1998, but was re-nationalised when Labour won power the following year.
Australian-based insurers would be the key beneficiaries of competition because they dominate the local market.